Personalization Trends to watch in 2016
Are you familiar with the problem of not having enough customers? Why are the visitors to your site never coming back? Have you ever thought about this problem? This article examines the largest problems content providers and e-commerce sites must face. It also offers solutions based on the personalization trends of 2016, which could increase profit and multiply the number of your customers.
What are the top mistakes made by web shops and news sites today?
The most common delusion says that traffic is the only key to success. The more people visit our site, the more customers we will have. It seems logical, but it isn’t true. Most content providers invest loads of money to get hits, but the income won’t be as much as they expect. Most of the time, only re-visitors will become customers, so the main goal should be to impress people. Let’s see examples on how to do this.
This method was invented by Dave McClure, who is a super angel from Silicon Valley, a successful entrepreneur and the founder of the 500StartUp accelerator. He believes that visitors must get through 5 steps to spend money on the site. The acronym similar to the famous pirate word „yarr” was created from the initials of the different stages:
- A: Acquisition — where and how are the users landing on the site?
- A: Activation — the rate of subscriptions and interactions
- R: Retention — are the visitors coming back?
- R: Referral — do they like the content so much they show it to others? (these are the most valuable visitors)
- R: Revenue — are we able to generate income from the visitors?
Everybody is focusing on getting visitors, although the goal should be to achieve as many re-visits as possible. Getting to know the loyal customers and providing them a better experience can help you reach this goal.
Personalization Trend #1: Getting every single piece of information about your customers
Studies clearly indicate that the users prefer 1) the fast login and they are willing to 2) give some data for the likable brands. However, most content providers do not build their websites according to these preferences. The brands don’t pay enough attention to the possibilities of SSOs (Single Sign-On) like Facebook Connect. Even if they do, it isn’t well configured. We suggest looking at developers.facebook.com and checking the permissions our login app is asking for. Statistics show that users almost always allow 3 to 5 permissions.
The sequence is:
- public profile
When we configure Facebook Connect, the first objective should be to investigate the habits of consumers. SpringTab Social Business Intelligence tool provides a great solution for this. After collecting data, the site filters the potential customers and personalizes content for them. SpringTab Personalization Engine helps the consumers to get what they want. Moreover, if the audience is satisfied, there will be less dropout and more profit.
Personalization Trend #2: Data-driven strategy. How does it look like in practice?
The brands should concentrate on contacting the already acquired customers, instead of looking for new ones. Although there are over 1.5 billion users on Facebook, the companies can only reach a small percentage. We don’t know our consumers’ preferences because Facebook Insights doesn’t give us such information. To overcome these problems, we need to create a personal database and save information about our visitors.
What kind of data will we need? Besides the contact information and basic demographical stuff (age, location and gender), we highly recommend storing their consumption habits, behavior on sites, and digital footsteps. The last one is arguably the most important because it allows us to dig deep into their personalities: the music they like, hobbies or traveling goals. It’s just like meeting a new friend. And that is why we need a data-driven strategy.
All of the important user data is available. To store the data perfectly, you will need a CRM (Customer Relationship Management) and a DMP (Data Management Platform) system. The more activity you can store in these systems, the better user experience you can provide.
These are the solutions we recommend:
It sounds difficult. Why should we try it? For the mid-range advantages.
Introducing data-driven marketing will cause cost reduction because by creating a personal database, we can make use of the Pareto rule (roughly 80% of the effects come from 20% of the causes).
To put it into a business perspective, more often than not, 20 percent of customers account for 80 percent of income. Creating a database can help us locate them. Besides that, the familiarity with visitors can also lower the CAC (Customer Acquisition Cost) by 10 to 20 percent on every new client.
Personalization Trend #3: The correct usage of the collected data
After we made the hard steps, it’s time to benefit from the collected data. There are many options for personalization; I will show you a few.
Programmatic Marketing & Retargeting
It’s all about displaying the right ad at the right time and in the right place. People hate the “traditional” ads, but programmatic marketing takes all the information it can collect about a buyer and converts that information into action.
However, people are not likely to buy on the first site visit, and that’s where retargeting comes into play. Retargeting uses cookie-based technology to follow buyers as they move from resource to resource. Every time a buyer visits your website, a small cookie is placed on their browser. These cookies store data about their behavior, so ad services can send the customers personalized ads about your product even after they leave your site.
Personalized websites use content optimization systems to deliver dynamic content to visitors. After the company knows everything about their preferences, it’s easy to show them the content they most likely want to see. If you would like to know more about our on-site personalization system, visit the SpringTab site.
Off-site Content Optimization
While most marketers associate personalization with email and tailored content, the opportunity (and challenge) reaches far beyond native properties. The new generation of personalization solutions will reach into off-site ad campaigns and traffic sources, matching display or PPC creative to on-site content segmentation.
Proximity Marketing for Mobile Devices
Proximity marketing involves using smart beacon technology to serve customers on their mobile devices with ads based on where they are geographically.
To target both smartphone and tablet users, marketers are going beyond simply delivering the same desktop content to a smaller screen. This means leveraging location-based services to target customers when and where they are most likely to buy.
Amazon, Netflix, Facebook (and many more) use product recommendation engines to help recommend products (or people) they believe a specific visitor will find useful or interesting.
Product recommendation engines work in several ways: Persona-based personalization sorts visitors into groups, and shows them similar stuff; Algorithm personalization collects data about its customers based on their behavior, and uses that information to create personalized recommendations; while the “Wisdom of the crowds” strategy uses crowd-sourced intelligence to monitor how most users interact with a brand’s site, and then recommends products based on what the overall group responds to most favourably.
I hope I could open your eyes and show how important is personalization in 2016. If you have any questions on the topic, contact us!
Originally published at blog.springtab.com on May 17, 2016.